Chelsea have managed to avoid breaching the Premier League's Profit and Sustainability regulations after a report revealed they had 'sold' their women's team. The Blues have found themselves in financial trouble in the past and have been threatened by a points deduction for previous transactions.
Since Todd Boehly's arrival in 2022, the club has spent over £1 billion on players, placing them on longer contracts in order to spread the cost. This has yet to translate into any substantial on-field success, which would bring in more revenue, meaning that Chelsea have now resorted to finding a PSR loophole, a move that has angered fans.
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Chelsea Sell Women's Team to Parent Company
The sale of the team and other subsidiaries means that they have made close to £200m in revenue
Chelsea owner Todd Boehly watching on from the Stamford Bridge stands
In a report from the Times, it was stated that Chelsea generated nearly £200 million in revenue by transferring their women’s team and various other subsidiaries to the club’s parent company. This strategic move enabled them to sidestep potential violations of the Premier League’s PSR regulations last season.
The west London outfit disclosed a figure of £198.7 million, leading to a pre-tax profit of £128.4million on their official website, though the full financial accounts for the 2023/24 campaign have not yet been made public. This time last season, they recorded a pre-tax loss of more than £90 million. It is reported that the women’s team was valued at over £150 million on its own.
The 20 clubs in the Premier League have chosen not to close a loophole that permits teams to report revenue from selling assets to affiliated companies. This is not the first time the Blues have exploited this role either, as they previously sold two hotels to a sister company in order to make £76.5 million.
On June 28, Chelsea handed over ownership of their women’s team to Blueco 22 Midco Ltd, just two days ahead of the June 30 deadline for registering finances for the 2023/24 season. In a statement released by the club, it was said that: "The profit for the year before taxation was £128.4million compared with a loss of £90.1million for the prior year as the club benefited from increased profit on disposal of player registrations and repositioning of Chelsea Football Club Women Ltd."
However, it has still been claimed that the Blues may find themselves being punished by UEFA, as rules from the European governing body state that clubs are unable to register income from sister companies.
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Fans React to Chelsea's PSR Loophole
Supporters online are furious
Chelsea players walking out for their Premier League match against Arsenal
Unsurprisingly, fans are not best pleased that the Stamford Bridge side have managed to find away around their financial struggles, with most condemning the exploitation. One person claimed that it was an 'absolute disgrace that things like this are allowed. So many clubs sticking to the rules & here Chelsea are just making their own." Another added: "They are the most ridiculous club in existence."
A third said: "It’s cheating plain and simple, anyone associated with CFC should be embarrassed, as should the PL for allowing it," while a fourth stated "There's no kind of shameless financial engineering that Chelsea won't do."